Virus, desktop has been changed on Windows 7

I have a virus. It changed my desktop to "Warning you have Spyware". I'm also getting pop ups saying buy a certain Anti Virus. I tried downloading AVG and it restarted my computer soon as I clicked download... This is a 6 month old Asus Laptop with Windows 7 with all the updates being completely up to date. No idea how it got a virus..

Should I follow the steps and post the logs? Thanks for any help on the matter.

Welcome back, Alex. The steps have changed since you were last here, so be sure to follow the current steps, including pasting the logs. System Tool 2011 has been around for a while- it just goes up a year from previous versions.

Please follow the steps in the Preliminary Virus and Malware Removal thread HERE.

When you have finished, leave the logs for review in your next reply .
NOTE: Logs must be pasted in the replies. Attached logs will not be reviewed.

Important!Please do not use any other cleaning programs or scans while I'm helping you, unless I direct you to. Do not use a Registry cleaner or make any changes in the Registry.

12/16/2010 5:33:55 AM, Error: Service Control Manager [7000] - The Windows Media Player Network Sharing Service service failed to start due to the following error: The pipe has been ended.
12/16/2010 5:27:12 AM, Error: Service Control Manager [7034] - The Windows Live ID Sign-in Assistant service terminated unexpectedly. It has done this 4 time(s).
12/16/2010 5:27:12 AM, Error: Service Control Manager [7034] - The Trend Micro Central Control Component service terminated unexpectedly. It has done this 2 time(s).
12/16/2010 5:25:49 AM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Google Update Service (gupdate) service to connect.
12/16/2010 5:25:49 AM, Error: Service Control Manager [7000] - The Google Update Service (gupdate) service failed to start due to the following error: The service did not respond to the start or control request in a timely fashion.
12/16/2010 5:23:37 AM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x0000001e (0xffffffffc0000047, 0xfffff80002af2034, 0x000000000000001f, 0xfffff88004a3209c). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-28298-01.
12/16/2010 5:18:51 AM, Error: Service Control Manager [7000] - The Google Update Service (gupdate) service failed to start due to the following error: The pipe has been ended.
12/16/2010 5:16:41 AM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x0000001e (0x0000000000000000, 0x0000000000000000, 0x0000000000000000, 0x0000000000000000). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-27596-01.
12/16/2010 5:09:31 AM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x0000001e (0x0000000000000000, 0x0000000000000000, 0x0000000000000000, 0x0000000000000000). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-29796-01.
12/16/2010 5:05:01 AM, Error: Service Control Manager [7034] - The ADSM Service service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:54:18 PM, Error: Service Control Manager [7001] - The HomeGroup Provider service depends on the Function Discovery Provider Host service which failed to start because of the following error: The dependency service or group failed to start.
12/16/2010 4:54:18 PM, Error: Service Control Manager [7001] - The Computer Browser service depends on the Server service which failed to start because of the following error: The dependency service or group failed to start.
12/16/2010 4:54:18 PM, Error: Microsoft-Windows-DistributedCOM [10005] - DCOM got error "1084" attempting to start the service WSearch with arguments "" in order to run the server: {9E175B6D-F52A-11D8-B9A5-505054503030}
12/16/2010 4:54:18 PM, Error: Microsoft-Windows-DistributedCOM [10005] - DCOM got error "1084" attempting to start the service WSearch with arguments "" in order to run the server: {7D096C5F-AC08-4F1F-BEB7-5C22C517CE39}
12/16/2010 4:54:16 PM, Error: Microsoft-Windows-DistributedCOM [10005] - DCOM got error "1084" attempting to start the service EventSystem with arguments "" in order to run the server: {1BE1F766-5536-11D1-B726-00C04FB926AF}
12/16/2010 4:54:10 PM, Error: Microsoft-Windows-DistributedCOM [10005] - DCOM got error "1084" attempting to start the service ShellHWDetection with arguments "" in order to run the server: {DD522ACC-F821-461A-A407-50B198B896DC}
12/16/2010 4:53:44 PM, Error: Service Control Manager [7026] - The following boot-start or system-start driver(s) failed to load: discache spldr sptd tmtdi Wanarpv6
12/16/2010 4:53:38 PM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x0000001e (0xffffffffc0000047, 0xfffff80002b01034, 0xfffffa80077871f0, 0x000000000000001b). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-21980-01.
12/16/2010 4:53:18 PM, Error: sptd [4] - Driver detected an internal error in its data structures for .
12/16/2010 4:51:23 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 4 time(s).
12/16/2010 4:51:23 PM, Error: Service Control Manager [7034] - The Google Update Service (gupdate) service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:51:23 PM, Error: Service Control Manager [7031] - The Software Protection service terminated unexpectedly. It has done this 1 time(s). The following corrective action will be taken in 120000 milliseconds: Restart the service.
12/16/2010 4:51:22 PM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Microsoft .NET Framework NGEN v4.0.30319_X86 service to connect.
12/16/2010 4:51:18 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 3 time(s).
12/16/2010 4:50:48 PM, Error: Service Control Manager [7031] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 2 time(s). The following corrective action will be taken in 30000 milliseconds: Restart the service.
12/16/2010 4:50:18 PM, Error: Service Control Manager [7031] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 1 time(s). The following corrective action will be taken in 30000 milliseconds: Restart the service.
12/16/2010 4:50:15 PM, Error: Service Control Manager [7034] - The Windows Live ID Sign-in Assistant service terminated unexpectedly. It has done this 3 time(s).
12/16/2010 4:50:05 PM, Error: Service Control Manager [7031] - The Windows Live ID Sign-in Assistant service terminated unexpectedly. It has done this 2 time(s). The following corrective action will be taken in 10000 milliseconds: Restart the service.
12/16/2010 4:49:55 PM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Windows Media Player Network Sharing Service service to connect.
12/16/2010 4:49:55 PM, Error: Service Control Manager [7000] - The Windows Media Player Network Sharing Service service failed to start due to the following error: The service did not respond to the start or control request in a timely fashion.
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The Trend Micro Central Control Component service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The SeaPort service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The Protexis Licensing V2 service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The FastBootAgent service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The Creative Service for CDROM Access service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The CinemaNow Service service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The Capture Device Service service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The ATKGFNEX Service service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The ASLDR Service service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7034] - The AFBAgent service terminated unexpectedly. It has done this 1 time(s).
12/16/2010 4:49:54 PM, Error: Service Control Manager [7031] - The Windows Live ID Sign-in Assistant service terminated unexpectedly. It has done this 1 time(s). The following corrective action will be taken in 10000 milliseconds: Restart the service.
12/16/2010 4:49:14 PM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x0000001e (0xffffffffc0000047, 0xfffff80002af9034, 0xfffff88002f50bb4, 0xfffffa8003eb7010). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-21496-01.
12/16/2010 4:46:08 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 7 time(s).
12/16/2010 4:46:08 PM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Software Protection service to connect.
12/16/2010 4:46:08 PM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Microsoft .NET Framework NGEN v4.0.30319_X64 service to connect.
12/16/2010 4:46:08 PM, Error: Service Control Manager [7000] - The Software Protection service failed to start due to the following error: The service did not respond to the start or control request in a timely fashion.
12/16/2010 4:45:47 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 6 time(s).
12/16/2010 4:45:38 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 5 time(s).
12/16/2010 3:18:29 PM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x0000001e (0x0000000000000000, 0x0000000000000000, 0x0000000000000000, 0x0000000000000000). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-24726-01.
12/16/2010 3:16:07 PM, Error: Service Control Manager [7031] - The Windows Modules Installer service terminated unexpectedly. It has done this 1 time(s). The following corrective action will be taken in 120000 milliseconds: Restart the service.
12/16/2010 3:16:06 PM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Windows Modules Installer service to connect.
12/16/2010 3:16:06 PM, Error: Service Control Manager [7000] - The Windows Modules Installer service failed to start due to the following error: The service did not respond to the start or control request in a timely fashion.
12/16/2010 3:16:06 PM, Error: Service Control Manager [7000] - The Windows Modules Installer service failed to start due to the following error: The pipe has been ended.
12/16/2010 3:16:06 PM, Error: Microsoft-Windows-DistributedCOM [10005] - DCOM got error "109" attempting to start the service TrustedInstaller with arguments "" in order to run the server: {752073A1-23F2-4396-85F0-8FDB879ED0ED}
12/16/2010 3:16:06 PM, Error: Microsoft-Windows-DistributedCOM [10005] - DCOM got error "1053" attempting to start the service TrustedInstaller with arguments "" in order to run the server: {752073A1-23F2-4396-85F0-8FDB879ED0ED}
12/16/2010 3:13:45 PM, Error: Service Control Manager [7009] - A timeout was reached (30000 milliseconds) while waiting for the Windows Live ID Sign-in Assistant service to connect.
12/16/2010 3:13:45 PM, Error: Service Control Manager [7000] - The Windows Live ID Sign-in Assistant service failed to start due to the following error: The service did not respond to the start or control request in a timely fashion.
12/16/2010 3:12:12 PM, Error: Service Control Manager [7043] - The Windows Update service did not shut down properly after receiving a preshutdown control.
12/16/2010 3:09:54 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 34 time(s).
12/16/2010 3:09:30 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 33 time(s).
12/16/2010 3:09:13 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 32 time(s).
12/16/2010 3:09:12 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 31 time(s).
12/16/2010 3:09:11 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 30 time(s).
12/16/2010 3:08:41 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 29 time(s).
12/16/2010 3:08:11 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 28 time(s).
12/16/2010 3:07:41 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 27 time(s).
12/16/2010 3:07:41 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 26 time(s).
12/16/2010 3:07:41 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 25 time(s).
12/16/2010 3:07:41 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 24 time(s).
12/16/2010 3:07:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 23 time(s).
12/16/2010 3:07:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 22 time(s).
12/16/2010 3:07:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 21 time(s).
12/16/2010 3:07:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 20 time(s).
12/16/2010 3:07:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 19 time(s).
12/16/2010 3:07:39 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 18 time(s).
12/16/2010 3:07:12 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 17 time(s).
12/16/2010 3:06:42 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 16 time(s).
12/16/2010 3:06:12 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 15 time(s).
12/16/2010 3:05:42 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 14 time(s).
12/16/2010 3:05:12 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 13 time(s).
12/16/2010 3:05:11 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 12 time(s).
12/16/2010 3:05:11 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 11 time(s).
12/16/2010 3:04:41 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 10 time(s).
12/16/2010 3:04:11 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 9 time(s).
12/16/2010 3:04:10 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 8 time(s).
12/16/2010 3:03:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 7 time(s).
12/16/2010 3:03:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 6 time(s).
12/16/2010 3:03:40 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 5 time(s).
12/16/2010 3:03:39 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 4 time(s).
12/16/2010 3:03:09 PM, Error: Service Control Manager [7034] - The Windows Modules Installer service terminated unexpectedly. It has done this 3 time(s).
12/16/2010 3:02:39 PM, Error: Service Control Manager [7031] - The Windows Modules Installer service terminated unexpectedly. It has done this 2 time(s). The following corrective action will be taken in 300000 milliseconds: Restart the service.
12/16/2010 2:58:49 PM, Error: Microsoft-Windows-WER-SystemErrorReporting [1001] - The computer has rebooted from a bugcheck. The bugcheck was: 0x000000f4 (0x0000000000000003, 0xfffffa8005c6bb30, 0xfffffa8005c6be10, 0xfffff80002dd55d0). A dump was saved in: C:\Windows\MEMORY.DMP. Report Id: 121610-26707-01.
12/16/2010 2:55:37 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 11 time(s).
12/16/2010 2:54:27 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 10 time(s).
12/16/2010 2:54:26 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 9 time(s).
12/16/2010 2:49:08 PM, Error: Service Control Manager [7034] - The Windows Media Player Network Sharing Service service terminated unexpectedly. It has done this 8 time(s).
12/16/2010 1:41:11 AM, Error: Service Control Manager [7011] - A timeout (30000 milliseconds) was reached while waiting for a transaction response from the lmhosts service.

Alex, you have malware from the vShare Plugin. This is a parasite that redirects home and search pages. It come from the Pugi family of customised toolbars/browser hijackers based on toolbar code from Softomate Solutions (besttoolbars.net). The behaviours of Pugi variants depends on the details in the configuration XML file supplied and updated by the customisers. Typically there will be a toolbar with a search box and link buttons, coupled with an address bar search hijacker, DNS error hijacker and sometimes homepage hijacker or search sidebar hijacker. Some of Pugi-based toolbars have been installed by various non-legitimate means and are considered parasites.
Source: allentech.net

I'd like you to run 2 programs that should then allow you to do the scans. You have Mbam on the desktop, so please download ComboFix from Here and save to your Desktop but don't run yet.
===================================================
Please download randmbam.exe
It will try to create random names and shortcuts for Malwarebytes Anti Malware(MBAM) if you have it installed already.
=============================================
Follow that with download of exeHelper to your desktop.

Double-click on exeHelper.com to run the fix.

A black window should pop up, press any key to close once the fix is completed.

Post the contents of exehelperlog.txt (Will be created in the directory where you ran exeHelper.com, and should open at the end of the scan)

Note: If the window shows a message that says "Error deleting file", please re-run the program before posting a log - and post the two logs together (they will both be in the one file).

Do not reboot the computer
==================================
Run the Malwarebytes scan.
==================================
Pick up here to run Combofix from the setup you downloaded and saved to the desktop:

[1]. Do NOT rename Combofix unless instructed.
[2].Close/disable all anti virus and anti malware programs so they do not interfere with the running of ComboFix.
[3].Close any open browsers.
[4]. Double click combofix.exe & follow the prompts to run.

NOTE: Combofix will disconnect your machine from the Internet as soon as it starts. The connection is automatically restored before CF completes its run. If it does not, restart your computer to restore your connection.
[5]. If Combofix asks you to install Recovery Console, please allow it.
[6]. If Combofix asks you to update the program, always allow.

Please do not attempt to re-connect your machine back to the Internet until Combofix has completely finished.
[7]. A report will be generated after the scan. Please paste the C:\ComboFix.txt in next reply.

Note: Do not mouseclick combofix's window while it's running. That may cause it to stall. Note: Make sure you re-enable your security programs, when you're done with Combofix..